Due to the increasing emission of carbon dioxide (CO 2 ), the development of fuels and chemicals based on renewable resources has attracted much attention. Bio-oil, as a carbon rich material, has been considered as a feedstock for biodiesel production. In conventional methanol-mediated transesterification of bio-oil for biodiesel production, significant amounts of glycerol are being generated as a byproduct. In order to overcome these issues, dimethyl carbonate (DMC) has been recently used as an alternative acyl acceptor to avoid the generation of glycerol. DMC is an environmentally-benign chemical reagent and reactive solvent due to safety, health, and environmental benefits. Moreover, DMC can be produced from CO 2 . Co-production of biodiesel and chemicals such as glycerol carbonate is possible as the concept of zero-waste utilization of bio-oil. Value-added chemicals can be synthesized using DMC as a reagent. This paper provides a review on the physical and chemical properties of DMC as a solvent, as well as the production methods for DMC. DMC-mediated production of various chemicals and fuels in both chemical and enzymatic processes are discussed together with their pros and cons.